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Tuesday, March 09, 2010
Blue Cross Rate Hikes on Hold
By Michael Hartranft
Copyright © 2010 Albuquerque Journal Journal Staff Writer
Premium increases of up to 29.5 percent for some 40,000 Blue Cross and Blue Shield of New Mexico individual policyholders will be put on hold pending a public hearing, State Insurance Superintendent Morris Chavez told the Journal on Monday.
Chavez, who had been on administrative leave since Jan. 28 pending an investigation into a personnel issue, returned to work Monday and said he expected to enter an order for the hearing today.
The not-for-profit Blue Cross and Blue Shield was granted an increase by the state Insurance Division technical staff late last year.
It was set to take effect April 1, affecting about 40,000 people who get health insurance through the company's individual plans. Several plans would be affected, with the average increase expected to be about 24.6 percent.
Saying it had received numerous complaints, the PRC on Thursday ordered the superintendent to hold a hearing on the increase and to consider freezing or setting an interim rate pending the hearing.
Chavez said Monday that he would exercise his authority as superintendent and "most likely" file an order today providing for a pubic hearing and stay of the increase.
"It is essentially the status quo," he said. "There will be no rate increase pending the outcome of the hearing."
He said he will preside over the hearing and that a date should be set by the time he reports to the commission this morning.
In addition to receiving public comments, "I want to make sure the staff has an opportunity to present why they recommended approval and I want Blue Cross to come in and talk about why they asked for the approval," Chavez said.
"We will be monitoring the outcome of (the PRC) hearing," said Blue Cross and Blue Shield spokeswoman Becky Kenny. "We have and will continue to comply with all regulatory requirements."
Last week, then-acting Superintendent Thomas Rushton said the division found the proposed new rates to be justified due to rising medical costs and demographics unique to individual insurance plans.
The Public Regulation Commission decided to reinstate Chavez on Friday, PRC spokesman Gerald Garner said.
Chavez said he was happy to be back at work.
"I just know they fully investigated it (the personnel matter), nothing was found and I'm back at work," he said.
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